By Paul A. Harris
St. Louis, Oct. 7 - Harvest Operations Corp. (Harvest Energy Trust) priced an upsized $250 million of seven-year senior notes (B3/B-) Thursday at 99.339 with a 7 7/8% coupon to yield 8%, according to market sources.
Price talk was 7 7/8% to 8 1/8%.
Morgan Stanley ran the books for the Rule 144A issue.
Proceeds will be used to repay the company's bridge facility in full and to partially repay its revolving credit facility.
Harvest Energy Trust is a Calgary, Alta., energy royalty trust that acquires and manages oil and gas properties.
| Issuer: | Harvest Operations Corp. (Harvest Energy Trust)
|
| Amount: | $250 million (increased from $200 million)
|
| Maturity: | Oct. 15, 2011
|
| Security description: | Senior notes
|
| Bookrunner: | Morgan Stanley
|
| Coupon: | 7 7/8%
|
| Price: | 99.339
|
| Yield: | 8%
|
| Spread: | 411 basis points
|
| Call features: | Callable after Oct. 15, 2008 at 103.938, 101.969, par on or after Oct. 15, 2010
|
| Equity clawback: | Until Oct. 15, 2007 for 35% at 107.875
|
| Pricing date: | Oct. 7
|
| Settlement date: | Oct. 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Price talk: | 7 7/8%-8 1/8%
|
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